Darren spoke at the White House recently, sharing thoughts on ExxonMobil’s interest in Venezuela. He kicked things off by expressing gratitude for the chance to engage directly with the press, especially regarding Venezuela—a topic they hadn’t addressed much before. He highlighted that many companies are present because they see Venezuela’s potential, given its vast resources. In an industry that constantly depletes resources, finding new ones is vital for future supply.
The challenge, Darren explained, lies not in locating resources but in developing them. He pointed out that it benefits both the companies and society when they understand what Venezuela can offer.
ExxonMobil’s strategy is to take a long-term view when entering new markets. Their investments are not just for quick returns; they aim for sustainable growth that benefits everyone involved—the company, the government, and the people. This approach fosters stability and allows for significant investments over time.
ExxonMobil’s connection to Venezuela is longstanding, dating back to the 1940s. However, they faced setbacks, having had their assets seized twice. Now, any potential re-entry would require considerable changes in the country’s political and economic landscape.
Currently, Darren described Venezuela as “uninvestable” due to its legal and commercial structures. He emphasized the need for reforms in these areas, including stronger investment protections and updated hydrocarbon laws to make the country more attractive for investors.
Looking ahead, he noted that improvements are possible with collaboration between the U.S. administration and the Venezuelan government. However, ExxonMobil hasn’t engaged directly with Venezuelan officials yet, so they need to learn more about local sentiments towards their potential entry.
Darren also mentioned short-term opportunities. After nearly 20 years away from Venezuela, he believes it’s important to establish a technical team to assess the current state of the industry. This team would help figure out how to boost production and get it back on the market.
With government permission and proper security, ExxonMobil is ready to bring in a team to help revitalize Venezuela’s oil industry. Their expertise spans production, refining, and trading, which could greatly assist in getting Venezuelan oil back into global markets.
In summary, while there are challenges ahead, the potential to positively impact Venezuela’s economy is significant. As discussions progress, the focus remains on building mutually beneficial partnerships that foster growth and stability.
